In the current year Wally Inc. purchase that investments of Olson company with a cost of $10,000 and a year end fair value of $11,200. this debt investment is classified as held to maturity in and this is wallys inc.. first and only purchase of such securities. The journal entry to record any necessary fair value adjustment to this held to maturity debt security as it's December 31 year end is

Debit Cash $1,200 credit interest Revenue $1,200. Debit Fair Value Adjustment-Held-to-Maturity $1,200, credit Unrealized Gain--Debt $1,200, Debit Fair Value Adjustment-Held-to-Maturity $1.200, credit Interest Revenue $1,200. Debit Cash $1.200 credit Gain on Sale of Investments $1.200 There is no journal entry made as there is no fair value adjustment to held-to-maturity securities